Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

24. With respect to a single-family home, the How much will it cost to rebuild? question o a. can easily be answered by using an

image text in transcribed
24. With respect to a single-family home, the "How much will it cost to rebuild?" question o a. can easily be answered by using an insurer's valuation software. o b. is best based on a contractor's expert opinion. oc. is increasingly difficult to answer. o d. should be answered by the insured, not the agent. 25. Callie had a homeowners policy with a dwelling limit of $1 million and Coverage B, C, and D limits of $100,000, $500,000, and $300,000, respectively. Attached to her policy was a Specified Additional Amount of Insurance for Coverage A-Dwelling (HO 04 20) endorsement that provided extended replacement cost coverage of 50 percent. At the time of the loss, the detached garage's actual cash value was $75,000. A wildfire destroyed the garage, but Callie's home was spared. Because demand surge drove up contractors' charges, Callie ultimately spent $200,000 to replace the garage with a new one just like it. Ignoring deductibles, and assuming Callie has met all relevant conditions, what is the insurer obligated to pay Callie? O a. $75,000 ob. $100,000 O c. $150,000 od. $200,000 24. With respect to a single-family home, the "How much will it cost to rebuild?" question o a. can easily be answered by using an insurer's valuation software. o b. is best based on a contractor's expert opinion. oc. is increasingly difficult to answer. o d. should be answered by the insured, not the agent. 25. Callie had a homeowners policy with a dwelling limit of $1 million and Coverage B, C, and D limits of $100,000, $500,000, and $300,000, respectively. Attached to her policy was a Specified Additional Amount of Insurance for Coverage A-Dwelling (HO 04 20) endorsement that provided extended replacement cost coverage of 50 percent. At the time of the loss, the detached garage's actual cash value was $75,000. A wildfire destroyed the garage, but Callie's home was spared. Because demand surge drove up contractors' charges, Callie ultimately spent $200,000 to replace the garage with a new one just like it. Ignoring deductibles, and assuming Callie has met all relevant conditions, what is the insurer obligated to pay Callie? O a. $75,000 ob. $100,000 O c. $150,000 od. $200,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions